FIN-350 Module 7 DQ 1- Diversification occurs when stocks with low correlations of returns…
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FIN-350 Module 7 DQ 1
Fundamentals of Business Finance – Short-Term Financial Decision Making
Grand Canyon University
Diversification occurs when stocks with low correlations of returns are placed together in a portfolio. Identify at least one type of firm that might exhibit low correlations of returns with the overall stock market? Explain why the correlations of these firms are expected to be low.